Independent Bank (NASDAQ:INDB) Releases Earnings Results, Misses Estimates By $0.09 EPS

Key Points

• Independent Bank reported quarterly EPS of $1.70, missing analyst estimates by $0.09. Revenue also came in below expectations at $253.32 million versus the $258.42 million consensus.
• The stock traded up 2.3% to $87.17 after the earnings release, with trading volume notably above average. The shares are near their 52-week high of $87.50.
• The company recently paid a $0.64 quarterly dividend, equal to an annualized yield of 2.9%, while analysts currently rate the stock a Moderate Buy with an average target price of $91.57.

Independent Bank (NASDAQ:INDB - Get Free Report) announced its earnings results on Thursday. The bank reported $1.70 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.79 by ($0.09), FiscalAI reports. Independent Bank had a return on equity of 8.66% and a net margin of 19.14%.The company had revenue of $253.32 million for the quarter, compared to analyst estimates of $258.42 million.

Independent Bank Trading Up 2.3%

INDB stock traded up $1.97 during midday trading on Thursday, hitting $87.17. 637,683 shares of the company's stock were exchanged, compared to its average volume of 350,641. The company has a market cap of $4.21 billion, a PE ratio of 17.30 and a beta of 0.77. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 0.94. The stock's fifty day moving average price is $80.85 and its 200-day moving average price is $79.13. Independent Bank has a one year low of $61.55 and a one year high of $87.50.

Independent Bank Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Monday, June 29th were issued a dividend of $0.64 per share. The ex-dividend date was Monday, June 29th. This represents a $2.56 annualized dividend and a yield of 2.9%. Independent Bank's payout ratio is currently 50.79%.

Analyst Ratings Changes

A number of brokerages have commented on INDB. Raymond James Financial reiterated a "strong-buy" rating and issued a $97.00 price objective on shares of Independent Bank in a research report on Friday, April 17th. Piper Sandler boosted their price objective on Independent Bank from $84.00 to $90.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Hovde Group assumed coverage on shares of Independent Bank in a research report on Friday, May 15th. They set an "outperform" rating and a $95.00 target price on the stock. Stephens initiated coverage on shares of Independent Bank in a research note on Wednesday, April 15th. They issued an "overweight" rating and a $88.00 target price on the stock. Finally, Weiss Ratings raised shares of Independent Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $91.57.

Insider Buying and Selling

In other news, Director Joseph C. Lerner sold 2,832 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $77.31, for a total transaction of $218,941.92. Following the completion of the sale, the director owned 16,215 shares of the company's stock, valued at $1,253,581.65. This represents a 14.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.60% of the company's stock.

Institutional Trading of Independent Bank

Hedge funds and other institutional investors have recently made changes to their positions in the business. Abel Hall LLC purchased a new position in Independent Bank in the 4th quarter worth approximately $209,000. Osaic Holdings Inc. raised its stake in shares of Independent Bank by 81.3% during the fourth quarter. Osaic Holdings Inc. now owns 3,869 shares of the bank's stock valued at $283,000 after purchasing an additional 1,735 shares during the period. Cibc World Markets Corp purchased a new stake in shares of Independent Bank during the fourth quarter valued at approximately $244,000. Xponance LLC lifted its position in shares of Independent Bank by 3.6% during the fourth quarter. Xponance LLC now owns 3,981 shares of the bank's stock worth $291,000 after purchasing an additional 140 shares in the last quarter. Finally, Mackenzie Financial Corp acquired a new position in shares of Independent Bank during the third quarter worth $213,000. 83.40% of the stock is currently owned by institutional investors and hedge funds.

Independent Bank Company Profile

Independent Bank Group, Inc NASDAQ: INDB is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company's primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.

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